topic Re: FHA Appraisal & GFE in Mortgage Loans

FHA Appraisal & GFE

Anonymous — Sun, 27 Sep 2009 03:55:51 GMT

Does everything on an fha appraisal have to be fixed in order for the loan to go through? Its an older home in good condition and there had been a lot of work done to it already. The biggest problems I think I'm going to have trouble with is a small area of water damage on the ceiling and there's no gutters on the house. The other few things can easily be fixed. The house is banked owned and when I had found out I asked my LO if that was ok before I put in the offer. Is it most likely they are going to deny the loan because the house has no gutters? I really doubt the bank would fix it.

Also do these GFE"s seem right

fha 5.25 interest

803 $485 appraisal

804 $35 credit report

809 $483.26 orgination fee

810 $84 tax service

811 $26 flood check fee

901 $238.20 30 days of interest

902 $949.92 fha upfront

903 $504 hazard insurance (i know this will increase because of the insurance i chose)

1001 $126 Hazard insurance

1003 $136 taxes

1105 $100 Document Preparation

1108 $218.40 Title insurance

1109 $200 Settlement agent/escrow

1110 $20 courier/express mail-clsng

1201 $50 recording fees

I dont think I have as many fees as others and I'm worried about extra things popping up

Re: FHA Appraisal & GFE

ShanetheMortgageMan — Sun, 27 Sep 2009 05:42:44 GMT

Anything that the appraiser lists as preventing the home from meeting FHA's minimum property standards will need to be fixed before you are able to close on the home... OR you can choose to get an FHA 203k loan to purchase the home + finance the cost of the repairs the appraiser has noted. Gutters are not always needed if the grading of the land would divert water away from the foundation, if any evidence of standing water that is likely a sign that the home does not have proper drainage.

Your GFE looks appropriate. Some states have higher costs, others have lower costs, appears you are in a state that has lower costs.

Message Edited by ShanetheMortgageMan on 09-26-2009 10:42 PM

Re: FHA Appraisal & GFE

Anonymous — Sun, 27 Sep 2009 14:52:36 GMT

There was no standing water at all. If they have that streamline loan would it be hard to switch the loan? Or would everything have to start over again. Even though it seems like such a big process for very little things. Are there any ideas of how to work something out with the bank to?

Re: FHA Appraisal & GFE

Anonymous — Sun, 27 Sep 2009 15:06:56 GMT

oopps ment 203k loan.. i was reading off their website at the same time...

Re: FHA Appraisal & GFE

ShanetheMortgageMan — Sun, 27 Sep 2009 18:43:33 GMT

There is the full version of the 203k, and then the 203k streamline, the 203k streamline limits improvements/repairs to $35k and many more lenders do that, but you should still be able to find the full version of the 203k. I've never had to switch a 203b (the regular FHA loan) to a 203k before, but I don't imagine it'd pose much of an issue. On Monday a good question to ask your loan officer is if they offer either of the 203k options. With bank owned properties I haven't known any to do any repairs, they are almost always sold "as is". If there are repairs needed to be done, the buyer usually has to do them before they buy the home.

Re: FHA Appraisal & GFE

Anonymous — Sun, 27 Sep 2009 20:52:42 GMT

i'll ask him tommorow about the different loans. i dont even mind getting the work done now if i know for certain there will be no other problems closing the loan and if they dont mind me choosing someone thats not like a big contractor.

Re: FHA Appraisal & GFE

ShanetheMortgageMan — Mon, 28 Sep 2009 04:51:33 GMT

Your contractor will have to be approved, typically they need to provide a resume with references, a copy of the cost estimate, and your agreement with the contractor.

Re: FHA Appraisal & GFE

Anonymous — Mon, 28 Sep 2009 13:25:12 GMT

that shouldnt be a problem but small contractors are self employeed n some not used to dealing with much paperwork. i was doing some searching and a lot of stuff said gutters arent required. just has to be proper drainage away from house. one plus of living in wv great drainage just dont live at the bottom. but for things like putring a plate on electrical box or rehanging a small area of insulation would they really make u hire someone to come out?

Re: FHA Appraisal & GFE

ShanetheMortgageMan — Mon, 28 Sep 2009 14:58:00 GMT

If you can document experience (licensed to do electrical work) then they'll permit you to do it, but otherwise no a contractor is almost always needed. A plate on an electrical box and insulation should only be a few hundred bucks, the increased costs of doing a 203k version of FHA will easily surpass that...if that's all there is you could be spending a dollar to save a dime. It's also in your best interest that the contractor you choose is very experienced and is used to providing that paperwork, if they aren't then a contractor disaster is likely awaiting down the road. Underestimates & extensions are the two most common issues when dealing with contractors, and seem to happen more often when doing 203k loans than you just paying them out of your own pocket.

Re: FHA Appraisal & GFE

Anonymous — Mon, 28 Sep 2009 21:47:28 GMT

I'd rather pay out of pocket for the repairs if i am able to. I still havent heard from my LO yet. the appraisal was done on the 19th and they've had it since the 23rd. They are still waiting for me to send them one sept statement so i guess they are waiting for it before they send it back to the underwriter.

Re: FHA Appraisal & GFE

ShanetheMortgageMan — Tue, 29 Sep 2009 01:55:54 GMT

If you can go down to your bank's branch, get a "transaction history" printed out by the teller, and stamped by them as well, as long as it has your name & the account number on it then your loan officer should be able to use that rather than waiting for the formal statement for the month of September to be generated.

Re: FHA Appraisal & GFE

Anonymous — Tue, 29 Sep 2009 02:56:45 GMT

oh thank u. i didnt realize, i know the lo didnt think to tell me cuz he knew my estimate of me having the rest of my down but i never account for bonuses in budgeting and actually had the rest last pay. so i'll be getting that printout in the morning.

Re: FHA Appraisal & GFE

kai_1103 — Wed, 30 Sep 2009 20:18:15 GMT

Just a thought...

I am planning to paint/stain the exterior, repair a light and install a door to pass FHA standards. The seller says okay, and it would make everyone happy. All work I can do over a weekend- so no big deal. Not to mention, I would do it all anyway after I close, along with a lot of other work.

Maybe you can just go do it yourself... ask the inspector to reinspect. Off the record- sometimes what people know won't hurt them. Fix it while no one is looking, and everyone wins. But a bank will rarely tell you to go on their property and do work- too much liability. Don't be a jerk and sue if you break a nail.

Hope it works out for you!

Re: FHA Appraisal & GFE

Anonymous — Wed, 30 Sep 2009 22:00:59 GMT

thats what i may end up doing but i'm going to wait to see what my bank wants fixed first and still try to get the bank that owns it to fix it. i got a general estimate on how much it would cost to fix and it was only $400 so they may just be willing to fix it so they can get it off their hands. It was just a general estimate though, he went by what was listed on the appraisal and not actually seeing it.